Satin Sachdeva, Founder & Secretary General, CERA
The rental industry’s performance has been better in the last one-year as compared to other sectors.
Recent push from government on Infrastructure growth just after agriculture and pharma sector, can be a big turnaround for this sector. We are heading towards decent growth in the infrastructure sector, that is, in roads, metro rails, railways, bridges etc. After the rains, many big projects will take off, resulting in huge employment and further fuelling other commodities and related sectors. Airport infrastructure development will also play a big role.
Though the Equipment Rental market has faced many challenges due to a slowdown in the last one year, and due to the Covid-19 pandemic, which worsened the situation, the silver lining for us is the rental industry’s performance, which has been better in the last one-year as compared to other sectors.
Also, as rental companies operate in bigger spaces, it has been easier for them to follow social distancing norms and take the health precautions prescribed by the government, thus enabling rental companies and infra companies to abide with the Covid distancing norms.
Generally, the monsoons are quite challenging for the rental industry but this year we are foreseeing good demand in the market, given the increased focus of the government on infra development. In fact, we are expecting good growth of the rental industry in the coming years. The rental market is expected to be quite bullish in FY2021 due to the uncertainty in the market and to avoid high capital spending, contractors and infrastructure companies will opt more for the rental and leasing model.
It’s a wise decision to reschedule bauma CONEXPO INDIA to Feb 2021.
It’s a wise decision as it’s still difficult to predict the Covid situation in the near future. Looking at the increasing number of Covid cases in our country and across the world, we cannot expect people to go to large social gatherings and exhibitions. The Government has also called for strict social distancing norms. Hopefully, by February 2021, the situation would have improved, and we will see business gatherings once again. Delhi’s climate too will be appropriate in February.
